ML19250A308
| ML19250A308 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 09/21/1979 |
| From: | Vollmer R NRC - TMI-2 OPERATIONS/SUPPORT TASK FORCE |
| To: | Arnold R METROPOLITAN EDISON CO. |
| References | |
| NUDOCS 7910230030 | |
| Download: ML19250A308 (10) | |
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UNITED STATES NUCLEAR REGULATORY COMMISSION W ASHINGTON, D. C. 20555
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N' September 21, 1979 Docket No. 50-289 Mr. R. C. Arnold Senior Vice President Metropolitan Edison Comcany 260 Cherry Hill Road Parsippany, New Jersey 07054
Dear Mr. Arnold:
In order to assure complete conformance with Section II.7 of the Comission Order of August 9,1979, we intend to review your financial qualifications to operate Three Mile Island-l safely, including (1) your ability to finance plant modifications and other actions identified in the Order, and (2) the safety implications, if any, of present and planned cost reductions at the Three Mile Island site.
Please respond to the enclosed request for financial information by October 15, 1979 Sincerely, l'/
~ Richard H. Vollmer, Director Three Mile Island-2 Support
Enclosure:
Eight Page Financial Information Request cc: w/
Enclosure:
See next page
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R. C. Arnold -
Metropolitan Edison Company Dr. Walter H. Jordan Walter W. Cohen, Consumer Advocate 881 W. Outer Drive Department of Justice Oak Ridge, Tennessee 37830 Strawberry Square, 14th Floor Harrisburg, Pennsylvania 17127 3r. Linda W. Litcie 5000 Hermitage Drive Robert L. Knupp, Esq.
Raleigh, North Carolipa 27612 Assistant Solicitor Krupp and Andrews George F. Trowbraidge, Esq.
P.O. Box P Shaw, Pittman, Potts & Trowbridge, Esq.
407 N. Front Street 1800 M Street, N.W.
Harrisburg, Pennsylvania 17108 Washington, D.C. 20006 Chairm w John F. Minnich,d of Co...issioners Dauphin Co. Boar Karin W. Carter, Esq.
Assistant Attorney General ggn ug ugth Department of Environmental Resources Harrisburg, Pennsylvania 17101 709 Health and Welfare Building Harrisburg, Pennsylvania 17120 Robert Q. Pollard Chesapeake Energy Alliance Honorable Mark Cohen 609 Montpelier Street 512 E-3 Main Capital Building Baltimore, Maryland 21218 Harrisburg, Pennsylvania 17120 Chauncey Kepford Ellyn Weiss, Esq.
Judith H. Johnsrud Shelden, Harmon, Roistan and Weiss Environmental Coalition on Nuclear Power 1025 15th Street, N.W.
433 Orlando Avenue Washington, D.C. 20005 State College, Pennsylvania 16801 Mr. Thomas Gerusky Holly S. Keck Bureau of Radiation Protection Anti-Nuclear Group Representing York Department of Environmental Resources 245 W. Philadelphia Street P.O. Box 2063 York, Pennsylvania 17404 Harrisburg, Pennsylvania 17120 John Levin, Esq.
Mr. Marvir I. Lewis Pennsylvania Public Utilities Commission 6504 Bradford Terrace Box 3265 Philadelphia, Penrisylvania 19149 Harrisburg, Pennsylvania 17120 Metropolitan Edison Company
'edan D. Cunningham, Esq.
Attn-J. G. Herbein, Vice President esx, Farr and Cunningham P.O.Bcx 542 2320 N. Second Street Reading, Pennsylvania 19603 Harrisbt.rg, Pennsylvania 17110 Ms. Jane Lee R.D. 3; Box 3521 Etters, Pennsylvania 17319 l l $I)
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REQUEST FOR FINANCIAL INFORmTION THREE MILE ISLAND NUCLEAR STATION, UNIT NO.1 DOCKET N0. 50-289 1.
Provide a detailed statement of the estimated costs required to complete each of the plant modifications and other actions identified in the Comission's August 9, 1979 order related to this proceeding.
Indicate amounts attributable to engi-neering fees, physical installations, and other construction expenditures or physical services (specifying nature), indicating the cost estimate for each modification or other action and the aggregate total cost estimate for all such actions.
Indicate for each such action whether it is an operating expense or a capital requirement.
2.
Provide a detailed schedule stating the amounts and timing of projected expendi-tures resulting from the cost estimates in item 1 above, and showing total monthly capital and total monthly operating expense requirements for the modifi-cations and other actions.
3.
Ccmplete the atta(1ed form entitled, " Pro-Forma Sources of Funds," on a monthly basis for each licensee and GPU, through the month of estimated completion of long-term modifications and other actions relatec to Unit No. I as identified in the Commission's August 9,1979 order. Note that this statement is for system-wide expenditures including capital expenditures related to TMI-l and TMI-2.
Indicate the asstoptions upon which the " Sources of Funds" statement is based. These asstrip-tions include, but are not,1ecessarily limited to:
(a) rates of return on average common stock equity, (b) preferred stock dividend rates, (c) long-term and short-term debt interest rates, (d) market / book ratios, (e) common stock dividend payout ratios, (f) target and month-by-month capital structure, and (g) resultant monthly l)h b!t
2-SEC and indenture coverages over the period. Provide a brief explanation of the basis for each asstnption.
4.
a.
Indicate the estimated annual cost by year to operate the subject facility for the first five full years of commercial operation following restart. The types of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense (with fuel costs shown separately), depreciation, taxes and a reasonable return on invest-ment.
(Enclosed is a form which should be used for each year of the five year period.) Indicate the projected plant capacity for the unit for each year.
b.
Indicate the expected source (s) of funds to cover costs in 4.a., above.
Indi-cate the unit price per kWh experienced by each licensee and by GPU on system-wide sales of electric power to all customers for the most recent 12-month period.
Indicate the portion of this unit price attributable to purchased power.
5.
Indicate the estimated costs of permanently shutting down the facility, a listing of what is included in such costs, the assumptions made in estimating the costs, the type of shutdown contemplated, and the expected source (s) of funds to cover these costs.
6.
Provide an estimate of the annual cost to maintain the shutdown facility in a safe condition.
Indicate what is included in the estimate, assu ptions made in esti-mating costs, and the expected source (s) of funds to cover these costs.
7.
Provide copies of any orders and directives issued by the Pennsylvania Public Utility Comission (PPUC) and the New Jersey Board of Public Utilities (NJBPU) that relate to funding of costs in items 5 and 6, above.
119 043
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8.
Provide copies of the joint participation agreement setting forth the procedure by which the licensees will share TMI-l modification expenses, operating expenses and, if necessary, decornissioning costs.
9.
Provide a detailed, itemization of all actions which are related to safe operation of the TMI-l facility that Metropolitan Edison has taken since the TMI-2 incident to reduce costs. Include any such actions related to facilities shared with THI-2.
Also, provide an itemization of any additional such cost reduction acticns that will be in effect when TMI-l resumes operation. Provide a detailed analysis of the safety implications of each of the identified present and planned cost reduction actions. Describe the criteria used to determine which cost reduction actions are related to ;afe operation of the TMI-1 facility.
10.
For each licensee and for GPU:
a.
Provide copies of:
- 1) the 1977 and 1978 annual reports to stockholders,
- 2) the nost recent interim financial statements,
- 3) the prospectus for the company's most recent security issue,
- 4) the preliminary prospectus for any pending security issue, and
- 5) the 1977 and 1978 SEC Form 10-X and the most recent SEC Form 10-0 Continue to submit copies of the annual report for each year thereafter as required by 10 C FR 50. 71( b).
b.
Describe aspects of each licensee's regulatory environment including, but not recessarily limited to, the following: test year utilized (describe nature and timing), prescribed treatment of allowance for funds used during construc-tion and of construction work in progress (indicate percentage and amount included in rate base), form of rate base [ original cost, f air value, other (describe)], accounting for deferred income taxes and investment tax credits, end fuel adjustment clauses in effect or procesed.
1199 044 c.
Describe the nature and amount of each licensee's most recent rate relief action and the anticipate; Tfect on revenues.
In addition, indicate the nature, status, and amount of pending rate relief proceedings, if any.
Use the attache,d form to pr ovide this information. Provide copies of the hearing examiner's report and recommendation and the interim and final rate orders and opinions, including all exhibits referred to therein. Provide copies of all other orders and directives issued by the PPUC and NJBPU related to financing the licensee's operations, including activities at TMI.
Provide copies of the submitted, financially-related testimony and exhibits of the PUC staff and company in the most recent rate relief action or pending rate relief request.
d.
Complete the ecclosed form entitled, " Financial Statistics," for the calendar years 1978, 1977, 1976, and for the most recent 12-month period.
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i AltaarttNT #0R_litti No. 3 Applicant:
Nuclear Plant: Three Mile liland, Unit 1 PRO F0lHA 500R(15_00 IUtID5 IOR SY511H-W10E Curl 51RUCIION [IPEN0lIUR[5 AND (ArilAt SIRUCIURE E1.i11 ions _ of, Dol _larsl trilRf4AL FINANCIMG
~Cemomm stoiF'~
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rreferred sto(t long-terie debt-thites payable Contributions frorn pasent-net Otteer furuts (desre lt.e) lotai fatainal funds INII.Nr4AltY GENtRAl(D (AjH tact income less:
preferred dividen.ls two.am dividenJs
- etained earnings Uaferred tases invest, ten cred.-deferred DepeecIaton and namrt.
thange in wneking capital less: Af0C total Internal Fumit 10lAt FUNUS 1_
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1 CON 5?RUCilott (IPitORIURE5*
- Mcicar power pli li -
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Other
-<a total const. esp's.
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i Subject nuclear plant l'
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1 Ol'IER CArilAt RI f IRIMINIS
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~ PeJAsilovi of Haluilng~ Bormis Os Aopsisition of Bonds f or 5 inking funds Miscellaneous Rerguirements (detall)
TOIAL CAPIIAL REytllRf MINIS CAPIIAL slRUCIURE ($ $ 1
~ ~ t iing :li.% del.i- ~~)~'-~
l 1 I I $
1 1 1 I 5 1 1 1 1 $
1 l 1 1 1
Prefessel sta(k (tysaan e.gu i t y 10 W
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ATTAC10ENT for Iterr No. 4.a.
ESTIMATED A.'CNUAL COST OF OPERATING NUCLEAR CENERATING UNIT: Twort uitr Iq AND NUCirAR STATION. UNIT 1 FOR THE CA'.E!QAR YEAR 19 (thousands of dollars)
Ooeration and =aintenance extenses Nuclear re'.er eener--icn Nuclear fuci exps, e'"(pla nt factor
%)...............
O t h e r c p e ra t i n g. e xp e n s e s...................................
EaL1:enance expenses.......................................
Total nuclear power generation.................
Transmission expenses........................................
Ad=inistrative and teneral extenses Proper:y and liability insurance...........................
Other A.6G.
expenses.......................................
Total A.6C.
cxpenses..................................
TOTAL OSM EXPEN3ES....................................
D e p r e c i a t i e n e ::p e n s e...........................................
Taxes other than ince=e taxes Proper:y taxes...............................................
0ther........................................................
Total taxes other than incoce taxes...................
Incc=e taxes - Federal.........................................
Inco=e :sxes - other...........................................
Deferred inec=e taxes - net....................................
Invest =ent tax credit adjus:=ents - net........................
Return (rs:e of return:
%)............................
TOTAL A'C.'UAL COST CF OPERATION 1197 04/
ATTACHMENT FOR ITEM N0.10.c.
RATE DEVELOPMENTS Electric Gas Steam Granted Test year utilized Annual amount of revenue increase requested-test year basis (000's)
Date petition filed Annual amount of revenue increase allowed-test year basis (000's)
Percent increase in revenues allowed Cate of final order Effective date Rate base fincing (000's)
Construction work in progress included in Rate base (0:0's)
Rate of return on rate base authorized Rate of return on common equity authorized Revenue Effect (COD's)
Ancunt received in year granted Amcunt received in subsequent year (If not availacle, annualize amounts received in year granted)
Pendinc Recuests Test year utilized Amount (000's)
Percent increase Date petition filed Date by which decision must be issued Rate of return on rate base recuested Rate of return on common equity requested Amount of rate base requested Amount of construction werk in progress requested for inclusion in rate base
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9 ATTACHMENT FOR ITEM NO.10.d.
FINANCIAL STATISTICS 12 months' ended 1978 1977 1976 (dollars in millions Earnings available to common equity Average common equity Rate of return on average common equity Times total interest earned before FIT:
J Gross income (both including and excluding AFDC) + curredt and deferred FIT + total interest charges + amortization of debt discount and expense Times long-term interest earned before FIT:
Gross inccme (both including and excluding AFCC) + current and deferred FIT + long-term interest charges + amortization of debt discount and expense Sond ratings (end of period)
Standard and Poor's Moody's Times interest and preferred dividends earned a'ter FIT:
Gross income (both including and exclading AFDC) + total interest charges + amortization of debt discount and expense + preferred dividends.
APJDC Net income after preferred dividends Market price of ccmmon Scok value of ccmmon Market-bcok ratio (end of period)*
Earnings avail. for common less AFDC +
depreciation and amortization, deferred taxes, and invest. tax credit adjust.-
deferred.
Ccm on dividends Ratio Short-term debt Bank loans Oc Te-cial pa:er Ca:italicatien (A.cu.t & Percent)
Long-ter-debt Freferred stock Cc-On equity
- :f s bsidiary company, use parent's data.h) 049}}